As service providers continue to expand their fiber and DOCSIS 3.1/4.0 networks, Dell’Oro forecasts that the sales of PON equipment for fiber-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will show a 0.2 percent Compounded Annual Growth Rate (CAGR) from 2022 to 2027.
In the fiber broadband arena, the research firm revealed that PON equipment revenue is expected to grow from $11.8 billion in 2022 to $13.3 billion in 2027, mainly driven by XGS-PON deployments in North America, EMEA, and CALA.
Likewise, the cable industry will see gains. Dell’Oro said that revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to reach $1.6 billion by 2027 as operators ramp their DOCSIS 4.0 and fiber deployments.
Inside the home, the ongoing proliferation of Wi-Fi continues to be a factor. The research firm predicted that residential Wi-Fi Routers revenues will surpass $5.2 billion in 2027, owing to massive shipments of Wi-Fi 7 units.
Another key trend to watch in broadband is the role of fixed wireless access (FWA), led by large providers such as Verizon and T-Mobile. Fixed Wireless CPE is expected to reach $2.7 billion by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.
Jeff Heynen, VP of broadband access and home networking research at Dell’Oro Group, said that while service provider broadband spending will level off, growth will pick up again as providers migrate to higher PON standards and DOCSIS upgrades.
“After three consecutive years of tremendous broadband network expansions and upgrades, 2023 is expected to show a return to normalized levels of spending,” he said. “After 2023, spending is expected to increase through 2026 and 2027, driven by 25 Gbps and 50 Gbps PON, Fixed Wireless CPE, as well as DAA and DOCSIS 4.0 deployments.”
